Friday, December 03, 2010

The New American Oligarchy

Thursday 02 December 2010

By Andy Kroll

Excerpts:

In the 2010 midterm elections, shadowy outside organizations doled out $190 million, outspending their adversaries by a more than two-to-one margin.

It used to be that citizens in large numbers, mobilized by labor unions or political parties or a single uniting cause, determined the course of American politics. After World War II, a swelling middle class was the most powerful voting bloc, while, in those same decades, the working and middle classes enjoyed comparatively greater economic prosperity than their wealthy counterparts. Kiss all that goodbye. We're now a country run by rich people.

[JG: Oligarchy is a form of government in which all power is vested in a few wealthy persons or in a dominant class or clique; government by the few. It is the opposite of democracy.]

The number of Americans earning a steady income declined by 4.5 million between 2008 and 2009, and the average wage in the U.S. dipped by 1.2%, to $39,055. On the other hand, the average wage among Americans earning more than $50 million per year was $91 million in 2008 and $84 million in 2009.

The penthouse of the New Oligarchy is an awesomely rich sliver of Americans raking in an outsized share of the nation's wealth. They're oil magnates and media tycoons, corporate executives and hedge-fund traders, philanthropists and entertainers. Depending on where you want to draw the line, they're the top 1%, or the top 0.1%, or even the top 0.01% of the population. And when the Supreme Court handed down its controversial Citizens United decision in January, it broke the floodgates so that a torrent of anonymous donations from this oligarchic class could flood back down from the heights and inundate the political lands below.

No understanding of the rise of our New Oligarchs could be complete without exploring the effects of the Supreme Court's January Citizens United decision, which set their power in cement more effectively than any tax cut ever could. Before Citizens United, the rich used their wealth to subtly shape policy, woo politicians, and influence elections. Now, with so much money flowing into their hands and the contribution faucets wide open, they can simply buy American politics so long as the price is right.

Never before has the United States looked so much like a country of the rich, by the rich, and for the rich.

Andy Kroll is a reporter in the D.C. Bureau of Mother Jones and an associate editor at TomDispatch.com. You can email him at akroll (at) motherjones (dot) com.

No comments: